We can't see how $55 million in public money to subsidize a private, for-profit business venture can be justified.
The proponents argue that the subsidies will be provided by tax-increment financing that would not be available at all if the project were not built, and by hotel room taxes that few Salt Lake County residents are likely to pay. True enough.
But this scheme only would make sense if it were likely to substantially increase the tax base and economy of the county. That seems a dubious proposition. The majority of patrons of the 20,000-seat soccer-specific stadium would be locals. It would simply be another facility competing for the local entertainment dollar rather than a magnet for tourists.
In fact, Salt Lake County Mayor Peter Corroon argues that the greatest economic driver in the package would be the $7.5 million donation from the Major League Soccer team to complete Salt Lake City's proposed complex of soccer pitches for youth and recreational teams. City voters approved a $15.3 bond issue in 2003 for that facility, but another $7.5 million in matching money is needed.
These soccer fields could attract thousands of visitors from other states to youth tournaments. These folks would stay in hotels and patronize local restaurants and shops, giving the economy a boost.
But it would make more sense to subsidize that project directly with the hotel tax, as state law already allows, rather than funnel $20 million in hotel tax revenue to Real in 2011 and 2015 in exchange for a $7.5 million contribution from the team.
Besides, county officials still cannot explain how they could craft an agreement with Real that would allow the county to buy the team's real estate with bonds that would be issued when hotel tax revenues become available in 2011 and 2015.
What this deal really represents is a huge pork package. Sandy gets the Real stadium, while Salt Lake City gets the youth soccer fields now and the hope for financing an arts district with hotel taxes in the future. But the big beneficiary remains Real.
